IBANK 6.6.9 Positions in Currencies

(1) An Islamic banking business firm must use separate maturity ladders for positions in each currency, with capital charges calculated separately for each currency and then summed. Positions in different currencies are not to be offset.
(2) If the firm's position in a currency is less than 5% of the value of the firm's banking book assets, that currency is taken to be a residual currency and the firm may use a single maturity ladder for all residual currencies (instead of having to use separate maturity ladders for each currency). The firm must enter, into each appropriate time band, the net long or short position for residual currencies.
(3) The firm must apply, with no further offsets, the risk factor in column 3 of table 6.6.8A to the position in each time band for residual currencies.
Derived from QFCRA RM/2015-2 (as from 1st January 2016).